Detroit, Michigan – A new labour agreement ratified by members of the United Auto Workers Union (UAW) eliminates the competitive gap with other automakers, according to General Motors. The amended agreement covers approximately 54,000 hourly workers in 46 U.S. facilities.
“The leadership demonstrated by UAW president Ron Gettelfinger and UAW vice-president Cal Rapson, and the hard work from the members of the GM and UAW negotiating teams, resulted in an innovative agreement that will enable GM to be fully competitive and has eliminated the gap with our competitors,” said Diana Trembly, vice-president of GM’s labour relations. “We very much appreciate the support of our employees and retirees. Their shared sacrifices will enable GM to become a stronger, more viable company that will continue to deliver world-class cars and trucks.”
Key highlights in the modified agreement include cost and cash savings that will enable the company to eliminate the wage and benefit gap with its competitors, changes to the agreements to the Voluntary Employee Beneficiary Association (VEBA) trust for retiree health care, and GM’s plan to use an idled assembly and stamping facility for future production of a compact or small car in the U.S. to meet future fuel efficiency regulations.